This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stock Futures Stay Positive Despite Disappointing Economic Reports

Stocks in this article: ^DJI ^GSPC ^IXIC BIG FB EMC NVE

NEW YORK ( TheStreet) -- Stock futures pointed to a higher open Thursday after worse-than-expected labor market and U.S. growth reports allayed investor concern the Federal Reserve may soon pull back on its stimulus program.

Futures for the S&P 500 were rising 4.5 points, or 5.24 points above fair value, to 1,651.5. Major U.S. stock markets slipped Wednesday on prospects that the Federal Reserve would curtail its bond-buying which has helped fuel the S&P's best start since 1991.

Facebook (FB - Get Report) was gaining 3.22% to $24.07 in premarket trading after the social media giant was boosted to "outperform" from "market perform" by BMO Capital analyst Dan Salmon, who wrote that investor sentiment has grown overly negative on long-term usage concerns of younger users. Jefferies has also upgraded Facebook, raising the stock to "buy" from "hold".

EMC (EMC - Get Report) was popping 5.62% to $24.99 after the cloud computing company hiked its share buyback program to $6 billion over the next three years and announced a quarterly dividend of 10 cents a share. Topeka Capital Markets analysts said in a note that EMC's joining of the "cash dividend club" is a positive for the stock.

Futures for the Dow Jones Industrial Average were gaining 30 points, or 36.20 points above fair value, to 15,320. Futures for the Nasdaq up 5.75 points, or 7.73 points above fair value, to 3,001.25.

The Bureau of Economic Analysis reported that its second estimate on U.S. first-quarter GDP showed a rise by an annual rate of 2.4%, up from a 0.4% increase in the fourth quarter, but below the prior estimate of 2.5%. Economists, on average, were expecting the estimate to remain at 2.5%.

Meanwhile the Labor Department said that initial jobless claims for the week ended May 25 rose 10,000 to a worse-than-expected 354,000. Economists were expecting jobless claims of 340,000. The four-week moving average was 347,250, an increase of 6,750 from the previous week's average of 340,500.

Continuing claims increased 63,000 to a higher-than-expected 2.986 million in the week ended May 18. Economists were expecting continuing claims of 2.95 million.

At 10 a.m., the National Association of Realtors is expected to say that pending home sales rose 1.1% in April after increasing 1.5% in March.

NV Energy (NVE - Get Report) shares were surging 23.03% to $23.72. Berkshire Hathaway's (BRK.A) energy subsidiary MidAmerican Energy is buying the Las Vegas utility for $23.75 a share in cash for an enterprise value of about $10 billion.

MidAmerican Energy will pay a 23% premium for NV Energy over Wednesday's closing price of $19.28.

Big Lots (BIG - Get Report) was tumbling 8% to $35.31 after the discount retailer produced full year and current quarter outlook that were below expectations, with second quarter same-store sales declining 2% to 4% from the prior year. First-quarter earnings were in line with estimates at 61 cents a share.

July crude oil futures were down 57 cents at $92.56 a barrel. August gold futures were surging $14.10 to $1,405.90 an ounce.

The benchmark 10-year Treasury was unchanged, with the yield at 2.116%. The dollar was down 0.36% to $83.36 according to the U.S. dollar index .

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs